After attending this presentation you will be able to...
- Recognize the difference between a discount rate and a capitalization rate and how to articulate this difference to clients and triers of facts
- Explore sources of information used in each component of the traditional build-up model used to develop reliable and supportable discount rates.
- Recognize the difference between a direct to equity method using a cap or discount rate versus the use of a weighted cost of capital model to value overall invested capital of an enterprise and why and when to use the two approaches.
Basic cost of capital knowledge